Ann: La Mancha Equity Derivative Transaction, page-9

Hi brianchu82 .... you clearly know a bit about this stuff.

LMGI sells fully paid shares at $3.99 on 27/11/19, and at the same time:

- buys/takes an "in the money call" from the banks split into 48 tranches at an average strike price of $3.81

- and sells/writes an "out of the money call" at an average strike price of $4.95.

We do not know the tranche details, the premiums paid and received, nor the expiry date of the options. That detail is presumably in the

"Transaction Supplement" letter dated 20/11/19 which is referred to in the Annexure A to the 26/11/19 LMGI announcement, but not provided.

Not very transparent. Very smoky really.

So the call taken/bought from the banks has a range of tranche strike prices above and below $3.81, but averaging $3.81. If the option expiry is imminent, it would be in the banks interest to have the SP below the average strike price of $3.81 to have the options expire worthless.

I can’t see any other incentive for either party to keep the SP low.

Any further thoughts on this?